The Korean government on Tuesday issued a caution to the nation’s trading companies over possible financial damage from the U.S. government’s new sanctions against Iran.
The alarm comes as the U.S.-led enhanced military and administrative sanctions against the Middle East country are due to take effect on July 1.
Raising the alarm level for trading with the Muslim republic, Seoul said in a statement that “some 2,300 small and mid-sized enterprises are likely to severely be hit by the U.S. action.”
Further, about 530 out of the 2,300 SMEs are posting more than 50 percent in the ratio of exports to total sales, according to the joint statement from the Finance Ministry, Foreign Affairs Ministry, Trade Ministry and Oceans Ministry.
The ministries predicted that “the nation will see exports to Iran, which came to $6.26 billion in 2012, drop considerably.”
Though Korean companies had only operated under a ceiling for exporting goods that could be used for Iranian petroleum development and oil refining production, more trading sectors will be subject to surveillance from the U.S. from next month.
“Irrespective of trading amount, Korean firms will be sanctioned when they export products from sectors including energy, shipbuilding, shipping, harbor facilities and steel,” the ministries said.
Sanctions will also be issued when Korean firms carry out trading related with Iran’s automobile production or assembly.
Ahead of the implementation date of July 1, major shipping firms such as Hanjin Shipping and Hyundai Merchant Marine have already decided to recently suspend their services.
Officials from the ministries said the government is scheduled to hold an emergency forum for exporters to give details about recent sanctions on June 13.
Last week, Washington blacklisted a major network of front companies that serve Tehran’s leaders as an enhanced measure to stifle the regime’s nuclear ambitions.
Global research analysts say that the U.S. aims to deprive the Iranian leadership of billions of dollars by clamping down on what it said were businesses that circumvent existing sanctions.
By Kim Yon-se (
kys@heraldcorp.com)
